• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Macau VIP down nearly 20 pct in June: analyst

Jul 02, 2014 Newsdesk Latest News, Macau, Top of the deck  


Macau VIP down nearly 20 pct in June: analyst

The reason for Macau’s casino gross gaming revenue (GGR) falling 3.7 percent in June – the first such monthly year-on-year drop since June 2009 by GGRAsia’s calculations – is probably because growth in the VIP segment is lagging, says a research house.

“We believe that the VIP segment likely tracked down about 20 percent year-on-year in June, while mass market continued to track at around a steady +30 percent rate,” Union Gaming Research Macau Ltd wrote in a note.

Macau’s casino GGR for June reached MOP27.22 billion (US$3.41 billion), down from MOP28.3 billion a year earlier, according to official data.

Since 2009, Macau casinos have tripled annual GGR, from about MOP120 billion to MOP360 billion in 2013.

On Tuesday, Macau’s Secretary for Economy and Finance, Francis Tam Pak Yuen, said the 2014 FIFA World Cup in Brazil had been a factor contributing to the decrease of GGR in June. The month-long tournament started on June 12 and it ends on July 13.

Mr Tam however said it is too early to make any assumptions on future trends, adding that the market shouldn’t be judged based on just one month’s figures.

“The year-on-year GGR comp [for June] was tough at +21.1 percent, while the calendar comp was also unfavourable with one fewer Saturday,” Union Gaming said.

“We continue to believe that the VIP slowdown is largely political (e.g. anti-corruption) in nature, rather than economic or even event-driven (e.g. World Cup, although this could be responsible for a few hundred basis points of the VIP decline),” said the research house.

It added: “We would expect to see VIP continue to be soft over the near-term, and would not be surprised to see overall GGR to continue to decline in the low/mid-single digits through the summer.”

Several analysts have said they expect a pick up in performance in the second half of 2014. “The worst is almost over,” Deutsche Bank gaming analyst Karen Tang said in a note before the figures were published.

Union Gaming said it doesn’t believe that a prolonged weak VIP story is necessarily built in to consensus. “Our recent conversations with investors have suggested a forming consensus of a flat-to-down-slightly VIP story over the coming months,” it said.

Analysts at UBS AG said they expect revenue growth to resume in the third quarter with the mass segment entering the strong summer months and “some stabilisation in VIP volumes”.


  • tweet
Related articles
  • Macau casino GGR down 9pct m-o-m in February: govt
    Macau casino GGR down 9pct m-o-m in...

    Mar 01, 2021  

  • Macau VIP challenged by changes in China: Galaxy Ent boss
    Macau VIP challenged by changes in...

    Feb 25, 2021  

More news
  • Macau Jan gaming tax take US$402 mln, down 63 pct
    Macau Jan gaming tax take US$402 mln,...

    Mar 03, 2021  

  • Casino surveillance biz decline leads Synectics to annual loss
    Casino surveillance biz decline leads...

    Mar 03, 2021  


Latest News

Macau Jan gaming tax take US$402 mln, down 63 pct

Macau Jan gaming tax take US$402 mln, down 63 pct

Mar 03, 2021  

The Macau government collected nearly MOP3.21 billion (US$402.1 million) in tax revenue from the city’s gaming industry for the first month in 2021. That figure was down 63.6 percent compared...
Read More
Casino surveillance biz decline leads Synectics to annual loss

Casino surveillance biz decline leads Synectics to annual...

Mar 03, 2021  

Casino op Genting Malaysia pay cuts March-May: reports

Casino op Genting Malaysia pay cuts March-May: reports

Mar 03, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

“As a leaner, stronger company, we expect leverage to return to pre-pandemic levels in the next 12-18 months”

Max Chiara

Chief financial officer at gaming product and lottery services provider International Game Technology



Most Popular

  • Galaxy Macau to add Raffles-branded hotel towerGalaxy Macau to add Raffles-branded hotel tower March 1, 2021
  • Macau casino GGR down 9pct m-o-m in February: govtMacau casino GGR down 9pct m-o-m in February: govt March 1, 2021
  • Melco’s Lawrence Ho hopeful on Macau recovery in MarchMelco’s Lawrence Ho hopeful on Macau recovery in March February 26, 2021
  • Covid-19 test cert no longer needed for Macau casino entryCovid-19 test cert no longer needed for Macau casino entry March 2, 2021
  • Macau VIP challenged by changes in China: Galaxy Ent bossMacau VIP challenged by changes in China: Galaxy Ent boss February 25, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us